Core Insights - Honda Motor Co Ltd has acquired a minority stake of 5-10% in OMC Power, which is developing a 1 GW renewable energy portfolio in India [1][2] - The investment coincides with OMC Power's expansion into electric vehicle (EV) battery storage solutions, repurposing old EV batteries for applications like UPS [2] - This marks Honda's first investment in a distributed energy platform in India, following over four years of discussions between the two companies [3] Company Developments - OMC Power's CEO highlighted the collaboration as mutually beneficial, with Honda providing technical expertise while OMC Power offers opportunities in its 1 GW renewable energy journey [4] - Honda becomes the third Japanese investor in OMC Power, joining Mitsui & Co. and Chubu Electric Power, which hold stakes of 26% and 30% respectively [4][5] Renewable Energy Portfolio - OMC Power plans to achieve 600 MWp from rooftop solar for healthcare customers, with an existing capacity of 75 MWp [5] - An additional 200 MWp will be generated for telecom verticals, while 100 MWp will be added to smart grids for rural areas, increasing operational capacity to 10 MWp [6] - The company will also introduce 100 MWp in solar EPC for MSME and C&I customers, starting with 5 MWp [6] Management and Future Plans - The management team of OMC Power will be joined by two Honda Motor officials to enhance technical support for upcoming projects [7] - Projects will be implemented across several Indian states, including Uttar Pradesh, Uttarakhand, Madhya Pradesh, Bihar, Jharkhand, Assam, and northeastern states [7]

Financial Data and Key Metrics Changes - Core FFO including net promote income was $1.46 per share, and excluding net promotes was $1.47 per share, both ahead of forecasts [8] - Occupancy ended the quarter at 95.1%, down just 10 basis points sequentially, widening outperformance to the market by 290 basis points [8] - Net effective same store growth was strong, with rent change across the global portfolio monetizing an additional $75 million of NOI, reflecting a 53% net effective basis and 35% cash [8][9] Business Line Data and Key Metrics Changes - The company started over $900 million in new development, with nearly 65% being build-to-suit activity across seven projects in the U.S. and Europe [9] - Build-to-suit starts for the first half totaled $1.1 billion, marking the largest start to a year [10] - The build-to-suit pipeline remains full with over 30 projects representing more than 25 million square feet in active dialogue [15] Market Data and Key Metrics Changes - In the U.S., net absorption was subdued at 28 million square feet, with market vacancy ticking up 10 basis points to 7.4% [14] - Market rents declined approximately 1.4% during the quarter, while values remained flat [13] - The leasing pipeline reached historically high levels at 130 million square feet, reflecting significant interest and need for space [15] Company Strategy and Development Direction - The company remains committed to serving customers at the center of consumption, focusing on logistics real estate as a strategic asset [19][20] - The strategy includes expanding the distributed energy platform and increasing development starts, particularly in data centers [11][17] - The company is excited about broader global potential and sees meaningful opportunities in the U.S. market [12][19] Management's Comments on Operating Environment and Future Outlook - Management noted that while conditions remain choppy, the underlying activity reflects a market that is active and moving forward [19] - There is confidence in the long-term trends driving the business, despite short-term uncertainties [19][41] - The company expects to see improved clarity in policy and trade arrangements, which will be key determinants of net absorption pace [16] Other Important Information - The company closed on $5.8 billion in financing activity, contributing to over $7 billion of liquidity held at quarter end [12] - Strategic capital business saw net outflows of approximately $300 million during the quarter [13] - The company is making steady progress toward its goal of one gigawatt of solar production and storage by year-end [11] Q&A Session Summary Question: Can you provide more details on the leasing pipeline and its impact? - The leasing pipeline is promising, up 19% year on year, with good balance across different deal stages and types [24][25] Question: What is the cadence of leasing activity from Q1 to Q2? - Leasing activity accelerated through May and June, ending the quarter only down about 10% from normal [31] Question: Can you elaborate on the guidance and factors driving it? - The environment has calmed significantly since April, leading to improved visibility and confidence in guidance [36] Question: How do you see the timing of the growing pipeline translating to signed leases? - Decision-making remains deliberate, with clarity on the macro front being crucial for converting the pipeline into signed leases [40] Question: What are the expectations for occupancy in specific regions? - Occupancy is expected to improve, particularly in Asia, while other regions may experience volatility [103]